New golden era for US natural gas storage looms as demand, rates rise
Growing intermittent demand for natural gas along the US Gulf Coast is fueling something of a renaissance in the salt dome storage market as LNG exporters, power generators and pipeline operators bid up prices for the South Central region's most flexible storage injection and withdrawal capacity.
Earlier this month, storage owner and operator Enstor was among the latest to enter the fray, announcing a non-binding open season to solicit bids for a proposed expansion of its three-cavern, 22.4 Bcf Mississippi Hub. As part of its Cavern Expansion Project, Enstor is proposing to construct, own and operate three additional gas storage caverns, each with about 10 Bcf of working gas capacity.
Enstor's proposed expansion comes amid rising prices for storage capacity, especially in salt domes, and follows a spate of storage development projects and asset deals announced in recent years.